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July 2, 2009

Rabbi Abraham J. Twerski: The hallmark of a person

Abe Novick: Up, up, and aliya

July 1, 2009

Rabbi Avi Shafran: The Road Taken

The Kosher Gourmet by Marialisa Calta: Get into the holiday spirit with these Star-Spangled desserts

June 30, 2009

Rabbi Binyomin Ginsberg: What makes a great parent?

Caroline B. Glick: Ideologue-in-Chief

June 29, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Beware of 'Caveat Emptor'

Steven Emerson: ACLU pushing for more money for Hamas

June 26, 2009

Rabbi Yoni Posnick: Learn the secret to a healthy marriage from a scriptural villain

Caroline B. Glick: Barack Obama vs. International Law

June 25, 2009

Rabbi Shimon Apisdorf: The Absurd Power of Truth

Jordan "Gorf" Gorfinkle's strip: Everything's Relative

June 24, 2009

Rabbi Yonason Goldson: Advancement of technology is a wake-up call for humanity

The Kosher Gourmet by Andrea Weigl: Summer on a stick: Making frozen treats can be easy, creative and fun

June 23, 2009

Martin M. Bodek: 'On Surnames': And so, We Begin

Caroline B. Glick: The Obama Effect

June 22, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Working for a corrupt firm

N. Richard Greenfield : Where are American Jews?

June 19, 2009

Rabbi Abraham J. Twerski: Emotion v. intellect

Caroline B. Glick: Israel's rare opportunity

June 18, 2009

Jonathan Rosenblum: Sometimes it is more essential to define the nature of evil than good

Jordan "Gorf" Gorfinkle's strip: Everything's Relative

June 17, 2009

Rabbi Yonason Goldson: The Language of Confusion

The Kosher Gourmet by Linda Gassenheimer: Nothing pleases Dad more than a thick, juicy onion-smothered steak. Add home-Baked Potato Chips and …

June 16, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Career v. Careersism

Caroline B. Glick: Obama's losing streak and Israel

Richard Z. Chesnoff: ‘Palestinians’: Never Missing an Opportunity …

June 15, 2009

Israeli Prime Minister Binyamin Netanyahu: How Judea and Samaria can become 'Palestine'

Daniel Pipes: Where Netanyahu's speech failed

June 12, 2009

Rabbi Abraham J. Twerski: Some big thoughts about not acting so big

Caroline B. Glick: Obama's High Commissioner

June 11, 2009

Victor Davis Hanson: Our historically challenged President

Mitch Albom: Beware the True Believers

Lewis Grossberger: What we learn from the new Hitler photos

June 10, 2009

Mort Zuckerman: What Obama and his advisors won't -- or refuse to -- grasp about Israel and the Muslim world

The Kosher Gourmet by Steve Petusevsky Lotsa pasta: Tips, techniques and (amazing) taste

June 9, 2009

Anne Bayefsky: Obama's stunning offense to Israel and the Jewish people

Frank J. Gaffney, Jr.: America's first Muslim president?

June 8, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Merchant must take responsibility for careless shopper?

Mark Steyn: A superpower that feeds on mediocrity cannot survive for long on leftovers from the past

Richard Z. Chesnoff: How do you say 'kumbaya' in Arabic?

June 5, 2009

Rabbi Abraham J. Twerski: In quest of spirituality

Caroline B. Glick: Obama's Arabian dreams

Charles Krauthammer: The Settlements Myth

June 4, 2009

Paul Greenberg: The War Comes to Little Rock

The Kosher Gourmet by Judy Hevrdejs: Splash it on! Tap your inner jazz musician and improvise when stirring up a vinaigrette

June 3, 2009

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q. Should terrible teacher be exposed?

Jonathan Rosenblum: The Israel Lobby: Missing in Action

June 2, 2009

Dennis Prager: The Speech President Obama Won't Dare Give in Egypt

Frank J. Gaffney, Jr.: Pressure on Israel raises war risk

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review August 27, 2008 / 26 Menachem-Av 5768

The idiocy of energy independence, II

By John Stossel


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http://www.JewishWorldReview.com | "John Stossel sounds like a real defeatist. ... We have our backs to the wall, and he's raising the white flag."


"Stossel has lost his mind." My column last week mocking "energy independence" angered people.


I argued that "independence," a favorite slogan of vote-hungry politicians, would require the government to interfere with the global division of labor, which, as economists have understood since Adam Smith's day, make us richer and therefore better able to deal with the future uncertainties. "It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. ... If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them," wrote Smith.


Of course, as many readers noted, the federal government, by doing things like prohibiting drilling in on- and off-shore areas that may have oil reserves, makes it more expensive or even impossible to produce energy in this country. Those policies should go, but that would still not bring self-sufficiency. Our demand for oil is too great.


And anyway, if the economics of oil production favor foreign over domestic producers, it still makes sense to buy the cheaper product. It wouldn't matter how much shale oil we have in the United States.


Readers correctly point out that because governments control much oil production, there is no global free market. But it does not follow that market forces don't work. There are many sources of oil in the world and many buyers. Supply and demand still set the price globally. It is foolish not to buy at the lowest price.


Many readers agreed with the one who said: "The short-term goal here is not complete energy independence. ... The goal is partial independence from those countries, many of whose citizens hate us and would do us harm."


"Partial independence" sounds like partial pregnancy. People don't have to like each other to benefit from trade. Those who sell us oil need the money so they can turn it into food, automobiles and other things. Refusing to sell because they don't like us would be self-destructive. Anyway, all the world's oil ends up in the same bathtub. If one foreign source stopped selling oil to the United States, it would sell to someone else, and that buyer would then have an incentive to sell to us.


Several readers argued that "Energy independence doesn't mean opposition to trade. If we ever become energy independent, we'll still have the option of buying energy on the world market."


Of course. But this misses the bigger point. To even attempt to achieve energy independence, the government will have to plan the energy sector. Considering how pervasive energy is throughout the economy, this is a recipe for full


central planning and a step toward poverty and tyranny. "Why not keep all that $720 billion [we spend to import oil] in the United States of America?" was a sentiment expressed by many. But that reveals a poor understanding of world trade. When we trade dollars to foreigners for oil, they have to do something with those dollars. They don't stuff them in mattresses. (If they did, it would mean we got free oil.) They buy American products. (U.S. exports are soaring.) Or they invest in businesses here. Or they sell the dollars to someone else who buys American products or invests in the United States.


If we stop buying from abroad, foreigners will have fewer dollars with which to buy American products or to invest. That would hurt us.


Many readers think that energy independence would produce jobs for Americans. But the idea that money spent abroad means fewer jobs here is just plain wrong. If Americans don't produce energy, they will produce something else. The number of jobs is not fixed. There is always work to do.


If Americans can produce competitive forms of energy — without government subsidies — great! But if others can produce energy more cheaply, we'd be crazy not to buy it and use the savings to make other things to improve our lives. Archives

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JUST OUT FROM STOSSEL
Myths, Lies and Downright Stupidity: Get Out the Shovel --- Why Everything You Know Is Wrong  

Stossel mines his 20/20 segments for often engaging challenges to conventional wisdom, presenting a series of "myths" and then deploying an investigative journalism shovel to unearth "truth." This results in snappy debunkings of alarmism, witch-hunts, satanic ritual abuse prosecutions and marketing hokum like the irradiated-foods panic, homeopathic medicine and the notion that bottled water beats tap. Stossel's libertarian convictions make him particularly fond of exposes of government waste and regulatory fiascoes. Sales help fund JWR.



JWR contributor John Stossel is co-anchor of ABC News' "20/20." To comment, please click here.


© 2008, by JFS Productions, Inc. Distributed by Creators Syndicate, Inc.

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